HomeMy WebLinkAboutB 5.0 Fund Balance Reserve CITY OF GRAPEVINE SECTION B
� ADMIIVISTRATIVE POLICY NUMBER 5.0
SUBJECT: FUND BALANCE RESERVE PAGE 1 OF 1
PREPARED BY: FI�18�1C@ EFFECTIVE DATE 09-03-91
PURPOSE �
The purpose of the fund balance reserve policy is to ensure fund availability for
unforeseen emergencies that would severely impact the City's ability to pay for basic
operations and guarantee the payment of debt obligation.
PROCEDURE
The emergency reserve should be maintained at the following minimum levels:
A. General Fund - 16% (60 days) of total current budgeted expenditures.
B. Debt Service Fund - 20% (75 days) of total current budgeted net debt service
expenditures.
� C. Occupancy Tax Fund - 16% (60 days) of total current bud eted ex enditures.
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D. Utility Fund - working capital reserves should be maintained at 16% f 60 days)
of total budgeted expenses.
E. Golf Fund - working capital reserves should be maintained at 25% (90 days) of
total budgeted expenses.
The reserves should be submitted as part of the annual budget process and be
reviewed by the City Council at the time of budget adoption. Any exceptions should
be noted at the time the budget is approved. As stipulated by the resolution, any use
of reserves not included in the annual budget will require that an ordinance be passed
amending the budget for this purpose.
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